Set in Stalinist Russia in the 1930s, with Stalin himself appearing at the end, in the Cold War era after World War II its comic treatment of Soviets and Nazis seemed misplaced, and the show was not revived until the late 1980s.

The Equity Library Theater in New York City presented a revival of the show – the first time it was revived in the United States – in March 1988.[8] The "Musicals Tonight!" series, New York City, held a staged concert in March 2001.[9] 42nd Street Moon Theatre Company, San Francisco, presented the musical in November–December 2001.[10]

In the late 1930s, aging businessman Alonzo "Stinky" Goodhue has become the American ambassador to the Soviet Union. The job was secured for him by his social-climbing wife, Leora, who helped to fund Franklin Roosevelt's re-election campaign. However, "Stinky" has no desire to live in Stalinist Russia. He is longing for the pleasures of his home in Topeka, Kansas, especially banana splits. He hopes his tenure as ambassador will be a short one. Meanwhile, an ambitious newspaper reporter, Buckley J. "Buck" Thomas, is employed to discredit Goodhue by his publisher who wants to be the ambassador himself. When Thomas and Goodhue realise they both have the same aims, they work together.

Goodhue plans to make major diplomatic gaffes, which will be publicised by Thomas. He delivers an inflammatory speech, but is hailed for his courage. He kicks the Ambassador of Nazi Germany, to the delight of the Soviets. He then attempts to shoot a Soviet official, but hits a counter-revolutionary aristocrat instead. Each time he ends up being hailed as a hero (in a parody of diplomatic speak, the British ambassador says "Britain views your deed [kicking the Nazi] with pride and alarm, congratulates and condemns you, and will now perform its breathtaking triple loop, suspended by a single wire, sitting in a tub of water."). His recall seems further away than ever.

In a subplot, Buck Thomas is involved with his boss's "protégée", the free-spirited Dolly Winslow. He falls in love with Colette, one of Goodhue's daughters. He has to extract himself from Dolly to win Colette. Dolly eventually finds herself stranded at a railroad station in Siberia. She slowly takes off her furs to admirers as she sings of her flirtations, but insists "My Heart Belongs to Daddy", referring to her "sweet millionaire" sugar-daddy.

The ambassador finally resolves to give up his tricks and tries to promote good relations between the United States and the Soviet Union; however his sincere attempts to improve matters now go disastrously wrong. He finally gets his wish to be recalled back to Topeka.

Music scholar David Ewen wrote that Mary Martin "stole the limelight...in her Broadway debut." Appearing in a scene at a railway station, she did "a mock strip tease while removing her ermine wraps, and all the while chanting in a baby voice, 'My Heart Belongs to Daddy.' The house went into an uproar, thereby proclaiming a new queen of musical comedy."[4]